At the most recent Grimes City Council meeting on Tuesday, Jan. 10, the council approved development agreements with three companies that will create jobs within the city.
West Des Moines-based Hy-Vee is one of those companies, however, they are not building a store in the city, but rather office space.
Brian Buethe, executive director of Grimes Chamber and Economic Development said that they are bringing some new IT jobs to an existing building on the south side of Grimes. They will be building out 130,000 square feet of a building in the R&R Development owned and developed Prairie Business Park.
Buethe said they are making this move in order to accommodate their need for anticipated growth.
“This is a tremendous project for the City and community of Grimes,” Buethe said. “Aside from the new property tax valuation that this will create, type and quality of the jobs that this will bring to the community will be well received.”
He said that Hy-Vee applied for and received financial incentives via the Iowa Economic Development Authority and needed a local financial match. The City of Grimes will be providing that match in the form of a Tax Increment Finance Rebate Agreement.
“In essence, the company agrees to create a certain number of jobs and, through the buildout, will create an increased valuation to the building they are moving into,” Buethe said.
The companies with this agreement will receive a reimbursement for taxes for five years on a sliding scale. They will be reimbursed 75 percent the first year, 66 percent the second year, 45 percent in year three, 30 percent in year four and 15 percent in year five.
Buethe said that there are certain portions of taxes that will not be eligible for reimbursement, most notably the tax used for school facilities known as the Physical Plant and Equipment Levee (PPEL).
Two other projects that had similar agreements approved are Daimler North American Distribution Facility and Prairie Business Park - Building No. 2.